A Responsibility Accounting System

question 42

Multiple Choice

A responsibility accounting system:

• A) Is designed to measure the performance of managers in terms of uncontrollable costs.
• B) Assigns responsibility for costs to the top managerial level.
• C) Is designed to hold a manager responsible for costs over which the manager has no influence.
• D) Can be applied at any level of an organization.
• E) Is well suited to work in an environment without clear lines of responsibility and authority.

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Definitions:

Espoused Values

The declared set of values and norms that an organization claims to follow and which are supposed to guide the behavior of its members.

Downsize

The reduction of a company's workforce to lower expenses, often resulting in layoffs.

Adaptive Challenges

Complex problems that require new learning and innovative solutions, often without clear solutions.

Leaders And Followers

Refers to the dynamic between individuals who guide or direct groups or organizations and those who support and implement the leaders' directives.